What Is the Process of Getting a Home Loan?
Owning a home is part of the "American Dream." The subprime mortgage crisis of 2007 and 2008 taught many people the importance of being prepared for what is likely the biggest purchase of their lives.
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Features
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Look for a mortgage with terms you can afford. Go to the bank where you have a checking or savings account or to a mortgage company. Choose a loan that offers you the best rate. You might qualify for a government-insured mortgage if you are a veteran, a first-time home buyer, if you want to buy a fixer-upper, if you want to buy a mobile or factory-built home or if you want to buy a single-family home in a rural area. Otherwise, look for a conventional mortgage, the Federal Reserve Board advises.
Considerations
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Consider the length of the loan and the down payment required. The larger your down payment, combined with the length of the loan term, the smaller your monthly payments will be. Keep in mind, however, that the longer the payment term, the more you will pay in interest over the long run. A larger down payment often lowers your interest rate.
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Expert Insight
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Get pre-approved for a loan before you go house hunting. Lenders pre-approve based on your income, debt and credit history, according to CNN Money. Get a copy of your credit report to make sure it is accurate before you try to obtain a mortgage.
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